Farm Horizons, May 2007
2006 Farm Business Management Program results in review
By Myron Oftedahl
The numbers are in. The South Central and Southwestern Minnesota Annual Report of the Farm Business Management Program has been published.
This report covers 24 counties in south central and southwestern Minnesota. The Farm Management Program has been in existence since 1953.
I will concentrate on corn and soybeans for this article.
Corn yields were down from a high of 184.3 bushels in 2005, to an average of 176.1 bushels in 2006.
The graph, above, represents the major costs associated with corn production. As you can see, rental costs have been steadily increasing, and from early reports this will continue in 2007.
Fertilizer costs were fairly stable the first seven years of the graphs, with a steady growth of cost during the last three years.
Chemical costs reflect the influence of seed technology allowing the use of Liberty and Roundup Ready technology. The increased availability and adoption of technology in the seed is displayed in the graph. The data clearly shows the increase of seed costs due to Bt, rootworm, and chemical technologies that have become available the last four to five years.